Starting a fashion brand requires more than just creativity—it takes strategic budgeting and financial planning. Many aspiring designers underestimate the costs of fabric sourcing, manufacturing, branding, and marketing, leading to financial strain before they even launch.

So, how much does it really cost to start a fashion brand? The answer depends on your business model, production scale, and marketing strategy. This guide breaks down the essential expenses, provides realistic budget estimates, and offers cost-saving tips to help you launch successfully without overspending.

Step 1: Business Registration & Legal Costs

1. Registering Your Business

Before selling your first garment, you’ll need to legally establish your brand. Costs vary depending on location and business structure.

| Expense | Estimated Cost |
| --- | --- |
| Business Registration (LLC, Sole Proprietor, or Corporation) | $100 – $800 |
| Trademark Registration (Brand Name & Logo) | $250 – $1,000 |
| EIN (Employer Identification Number) & Business Permits | Free – $500

Cost-Saving Tip: Start as a sole proprietor and register as an LLC later when scaling.

✔ How ERP Helps: Tracks business expenses and tax deductions for better financial planning.

Example: A new fashion startup saved $500 by using an online legal service for LLC registration instead of hiring a lawyer.

Step 2: Product Development & Sampling Costs

1. Design & Tech Pack Creation

Creating detailed tech packs ensures manufacturers produce your garments accurately, reducing errors and costly revisions.

| Expense | Estimated Cost |
| --- | --- |
| Freelance Fashion Designer | $300 – $2,500 per design |
| Tech Pack Development | $100 – $500 per style |
| PLM Software (Product Lifecycle Management) | $50 – $500/month

Cost-Saving Tip: Use KOBO PLM to create your own tech packs instead of outsourcing.

2. Fabric & Trims

Fabric costs depend on material quality and order quantity.

| Expense | Estimated Cost |
| --- | --- |
| Basic Cotton (per yard/metre) | $3 – $10 |
| Sustainable Fabrics (per yard/metre) | $10 – $40 |
| Trims (Zippers, Buttons, Labels per unit) | $0.50 – $5

Cost-Saving Tip: Buy stock fabrics instead of custom-made textiles to lower minimum order quantities (MOQs).

✔ How PLM Helps: Tracks fabric suppliers, costs, and sustainability certifications.

Example: A startup cut fabric costs by 30% by sourcing from deadstock suppliers instead of custom mills.

Step 3: Manufacturing & Production Costs

1. Sampling Costs

Sampling is essential before bulk production to ensure fit, fabric quality, and construction.

| Expense | Estimated Cost |
| --- | --- |
| Prototype Sample (Per Style) | $50 – $500 |
| Fit Sample (Per Size) | $100 – $300 |
| Pattern Grading (For Size Scaling) | $50 – $250 per style

Cost-Saving Tip: Work with low MOQ manufacturers to minimize initial sample costs.

2. Bulk Production Costs

Production costs depend on quantity, fabric, and manufacturing location.

| Production Type | Estimated Cost (Per Unit) |
| --- | --- |
| Basic T-Shirt (Small Batch, USA/Europe) | $8 – $20 |
| Hoodies (Small Batch, USA/Europe) | $15 – $50 |
| Luxury Dress (China/Europe) | $50 – $200

✔ How ERP Helps: Tracks production lead times, order quantities, and cost per unit.

Example: A small designer brand reduced per-unit costs by 40% by sourcing from a manufacturer with flexible MOQs.

Step 4: Branding, Marketing & E-Commerce Costs

1. Branding & Packaging

Creating a strong visual identity builds brand recognition and trust.

| Expense | Estimated Cost |
| --- | --- |
| Logo & Branding Design | $100 – $2,500 |
| Custom Packaging (Tissue Paper, Boxes, Stickers) | $2 – $10 per order |
| Hangtags & Labels | $0.50 – $3 per unit

Cost-Saving Tip: Start with minimalist branded packaging and upgrade as your brand grows.

2. Marketing & Website Setup

A well-designed website and social media presence are essential for generating sales.

| Expense | Estimated Cost |
| --- | --- |
| Website Development (Shopify, WooCommerce) | $29 – $300/month |
| Product Photography | $300 – $2,000 per shoot |
| Influencer Marketing (Paid Collabs) | $100 – $5,000 per campaign |
| Facebook & Instagram Ads | $500 – $5,000 per month

✔ How CRM Helps: Tracks ad campaign ROI and influencer engagement.

Example: A DTC fashion startup increased sales by 60% within 3 months using a combination of Instagram ads and micro-influencer campaigns.

Total Estimated Cost Breakdown

| Category | Minimum Budget | High-End Budget |
| --- | --- | --- |
| Business Registration & Legal | $250 | $1,500 |
| Product Development & Sampling | $2,000 | $10,000 |
| Manufacturing & Production | $5,000 | $50,000+ |
| Branding & Packaging | $500 | $5,000 |
| Marketing & Website | $2,500 | $15,000+ |
| Total Estimated Cost | $10,250 | $81,500

✔ How ERP Helps: Manages budgeting, inventory, and financial forecasts to prevent overspending.

Conclusion

Starting a fashion brand requires careful budgeting and cost management to avoid financial setbacks. Whether you launch with a small collection or a full-scale operation, strategic planning and the right tools (PLM & ERP systems) can help control costs and maximize profits.

Next Steps:

• Download our Fashion Startup Budget Planner.

• Book a KOBO PLM & ERP demo to optimize cost tracking.

• Learn how to reduce production expenses with smart sourcing strategies.